...a blog by Richard Flowers

Wednesday, February 29, 2012

Day 4069: Greek Tragedy


The impossible financial situation in Greece rumbled on. On the one fluffy foot, you can UNDERSTAND why the Euro-bankers might want everyone in the Greek Parliament to sign up to the latest rescue plan – with fresh elections on the way, the temptation must be for an opposition party to repudiate the deal and stand on a platform of abandoning the austerity. And they'd probably WIN. The next government will surely be tempted to default, meaning the bankers will lose all the money they're considering loaning to the current government. So OBVIOUSLY they want everyone to be as IMPLICATED as everyone else.

But on the other fluffy foot, the bailout loans are basically by-passing the Greek people and going straight back to the banks that loaned them too much money in the first place.

Anyway, the Greek government managed to pull itself together long enough to even more pain... and then the Euro-bankers kept them waiting another week before grudgingly agreeing to hand over the cash rather than let the mother of democracy go bust. Which was nice.

Lots of people continued to opine that Greece will "obviously" have to leave the Euro, as though this makes any sense at all. ANY new Greek currency will fall through the floor faster than you can say TARTARUS, and leave them with raging hyper-inflation on top of their massive EURO-DENOMINATED debts. The problem for the Eurozone remains, as I've said before, north-European (especially German) reluctance to take some responsibility for the economic disparities and agree to GIVE MONEY to the poorer parts of the continent.

Unsurprisingly, the Greeks responded to this with the now the traditional riots.

2008 Riots
2010 Riots
2011 Riots
2011 Riots again
2012 Riots
2013 Future Riots

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